St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1887-01-06

rates charged for transportation OF freight
and passengers. II upon complaint, or other
wise, it shall appear to the commission, after
careful investigation, that such rates are in
any respect unequal, unjust or unreason-
abe,'' it should be authorized to require and
compel such hanges as shall make them
| equal, reasonable and just. There can be
no good ground Of objection to this regula-
| ton upon the part of the companies them
| selves. Indeed, they should rather wish to
| see it established, as the process of it's on
forcement would give opport unity for such
Vindicatlon OF their equitable policy respect.
ing the public, as the facts in each case world
warrant.
! Inc excessive and fictitious capitalization
OF the property of railway corporations Is q
proper subject for legislative consideration.
IL Is VIGOROUSLY the practice of these COM
panles, after realizing from the sale of their
Dohas money sufficient to build and equip
| their lines, to issue in addition stock to an
| equal or greater amount representing as a
RUE no value whatever but appropriated as
| gratulty oy the syndicate controlling the
franchises of the company. To give these
ialSe ISSUES or securities real value, dividends
must pe earned oy the road and paid thereon.
Tue practical etfeot of this is the perpetra-
tlon or fraud upon the public. Rates OF
transportation must be dyed high enough to
| reaiize net earnings sufficient to pay these
| dlvldends aftet liked oaarges are met As a
| RUE, II complaint is made that rates are hi Oh
| ana that commodities will not bear cost of
transportation. the company responds that It
| is charging ouIy what is necessary to earn q
| fair income upon its investment and perhapa
refers TO Its sworn statements made to the
board of comm Ssoners rs to the amount Of
such investment, which always includes such
over issue of securities. This practice does
not require elaOoratlon to expose itS oppres.
\ S1ve and dishonest character but If loudly
calls for remedy. The drafts for acts pro-
pSsad by the commissioners. to prohibit the
or unpaid shares OF stock of railroad com.
panles, aud TO ire uate the proceedings of
railroad companies desiring to increase their
capital stock" will protect the public against
growth of the evil. The evident remedy,as
regards existing corporations, is an adjust
nent OF their revenues and dividends upon
the asls OF q fair aed liberal estimate of the
actual cost or value OF rieir properties.
Inc incorporates into the fundamental
| lew or the state of IN amendment asserting
the iuii power OF the state as to corporate
control, is recommendation of the commits
| sloners in which cordially concur. Though
this principle is sustained b. the courts it is
not wholly admitted by the corporations. AS
an authority coming from the constitution it
would command acquiescence.
The laborS of the board under the law for
the regulation OF warehouses and the inspec.
tlon OF grain have resulted in the inaugura-
tion OIL system of state inspection and
weighing which has worked most sausfac-
n
adopted by the board for the handling Of
grain have had the effect to remove the cause
for much Of the complaint that had existed
among FARMERS and country shippers, of ir-
regularities and abuses respecting the dis
position of their property. Minnesota grades
OF wheat are now the recognized standard in
Eastern and European markets, and the in.
tegrlty OF our state inspection commands the
run confidence Of the trade. Undoubtedly
the adoption of this system has added ap-
| n aarl-a xrol,,n
and resulted in realizing much more to the
producer than he would have received under
the old order of things The grades and rules
or inspection as first established proved so
SATISFACTORY that any change in them was
generally objected to by farmers and dealers
at toe commencement Of the present crop
year.
Some amendments to the law correcting
1mperlections widening its scope and extend
Ing the supervision CT the commissioners to
county elevators, are recommended by the
board
The successful results achieved under the
raRroad and warehouse laws have been so
| la$geiJ due TO the ability, industry and apl-
tude for their work OF the commissioners,
| that feel they have earned the thanks of the
people Of the state. They have secured con-
ceSeions from the railroad companies greater
than have ever been accorded to any state
! railroad commission in the country, and they
have inaugurated system of state grain in
spection whica is being quoted and copied as
model in some of the older States
There are now in operation 400 miles Of
railroad in the state, an increase of 1873 miles
in two years. Cost per mile, as reported,
$50, 744,Sl. The earnings of these roads were
as follows:
1885. 1856
Gross. So, 617, 1871 $50, 1O2, 3l9 81
Net. 1866 62 IS 1870 63,O52. SIS
Taxes paid to
the state..... 6l1,743.55 6l2,545.Os